Overview

3.0Credits

Financial statement auditors are engaged to provide reasonable assurance that financial statements are not materially misstated, whether due to fraud or error. Professional standards require auditors to obtain sufficient and appropriate evidence to support that opinion. It is critical for effective and efficient auditors to have a clear understanding of all the important elements and concepts related to a financial statement audit.

Objectives

Clarify the basis for an audit

Explain the auditor's professional responsibilities

Describe important audit concepts, such as materiality

Complete the audit risk formula

Identify and assess risk of material misstatement

Major Topics

The reason that entities engage a financial statement audit

List the applicable financial reporting frameworks available

Differentiate the responsibilities of management and auditors

The various phases of a financial statement audit

Evaluating and documenting audit risk, both at the overall and relevant assertion level